Somalia launches nationwide instant payment system with QR support

By Gloria Methri

Somalia has introduced its first-ever instant payment system, making digital transactions faster, safer, and more accessible for citizens. The Somalia Payment Switch (SPS1), backed by the Central Bank of Somalia (CBS), is designed to modernise the country’s financial system and improve financial inclusion.

Despite growth in Somalia’s financial sector, many people still rely on cash or have limited access to banking services. The new system, powered by BPC’s SmartVista platform, aims to change this by offering secure and real-time digital payments across the country.

The Somalia Payment Switch (SPS) is the main operator of the new system and has introduced the SOMQR standard, a national QR payment system. This system allows people to make payments simply by scanning a QR code, reducing the need for cash.

The SmartVista platform includes several features to make transactions smooth and safe. These include:

• An Integration Platform for seamless connectivity between banks and financial institutions.
• A Participant Portal for real-time tracking of transactions
• A Dispute Portal for quick issue resolution.
• Fraud Management Solutions to detect and prevent financial crimes.
• Initially launched on the cloud, the system will soon move to a local data centre to improve reliability and security.

With the new system in place, Somali consumers can now transfer money instantly using mobile apps or banking platforms. QR-based payments allow merchants to generate a QR code that customers can scan to make quick and contactless payments. Transactions are secured using PINs or OTPs (one-time passwords).

The system operates 24/7, every day of the year, ensuring businesses and individuals can send and receive payments anytime. Security measures such as Public Key Infrastructure (PKI) have been implemented to prevent fraud and unauthorised access.

Since the system’s launch, seven banks have already connected to the Somalia Instant Payment System (SIPS). Another six banks and major mobile money operators are expected to join by the end of the year. This will allow seamless transactions between bank accounts and mobile wallets, making digital payments more convenient for everyone.

Abdirahman M. Abdullahi, CBS Governor and SPS Chairperson, said, “The launch of SIPS in January 2025 marks a transformative milestone for Somalia’s financial sector. This innovation brings speed and security to daily transactions, empowering businesses and individuals to embrace a cashless economy. BPC has proven to be a reliable technology partner, delivering a robust solution that propels Somalia’s payment ecosystem to a new level.”

Angelo Bertini, Senior Vice President and Chief Commercial Officer at BPC, added, “We are honoured to support Somalia’s transition toward a fully digital, inclusive financial ecosystem and share our international and local expertise to assist SPS throughout this transformative journey. Providing next-generation technology is vital for enabling safe and efficient payment services. Our future-proof, scalable SmartVista platform is designed to support national projects like this for decades to come. We look forward to further accelerating Somalia’s digital transformation and expanding the reach of financial services to more people and communities.”